Cramer's 'Mad Money' Recap: There's No Place Like Home Stocks
NEW YORK (TheStreet) -- With a turnaround in housing underway, it's time to go shopping for home-related stocks, Jim Cramer told "Mad Money" viewers Tuesday. That means taking a stroll through the aisles of Home Depot(HD) .
Cramer said Home Depot's conference call was a thing of beauty, one where management told investors that even the hardest-hit areas of the country, California and Florida, are seeing improvements in their housing markets. Cramer said that news alone is enough to warrant a buy of Home Depot, along with any of the home builders with big exposure to those regions.
But beyond the obvious, Cramer said that Home Depot is also excellent for tipping investors off to which categories are poised to profit most. The company noted that inventories are lean, meaning new orders are coming for a whole host of companies including flooring, paint, kitchen and bath, lumber, tools and more.
Cramer said when it comes to flooring, he likes Mohawk Industries(MHK) , and when it comes to paint Sherwin Williams(SHW) is the way to play. For kitchen and bathrooms, Cramer likes Fortune Brands Home Security(FBHS) and Masco(MAS) .
Finally, Cramer said that he's a buyer of eBay(EBAY) , another Action Alerts PLUS name, as that company's PayPal unit is now accepted at Home Depot and could be a catalyst for other big merchants.